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Home arrow newsitems arrow EU Parliament Rapporteurs,Gauzes,Beres+Cornelisen to EuroFora:Fragile Advance on Exports,Growth+Gas

EU Parliament Rapporteurs,Gauzes,Beres+Cornelisen to EuroFora:Fragile Advance on Exports,Growth+Gas

Written by ACM
Tuesday, 14 February 2012
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*Strasbourg/EU Parliament/Angelo Marcopolo/- [UPDATED ON 15/2/2012+]-   EU Parliament's Rapporteurs on Growth survey, mainstream MEPs Gauzes (EPP), Berres (Soc) and Cornelissen (Green) from France and the Netherlands, replying to "EuroFora"s questions on this week's landmark debate on the forthcoming EU Heads of State/Government's Summit for Growth (March 1 to 2, in Brussels), welcomed but examined carefully some recent Positive economic results obtained by key EU Countries, including France and the entire €urozone, etc., as well as recent Energy Findings, revealing the fact that, sometimes, pertinent, ground-breaking " New Facts" emerge faster than subjective percecptions, even of the most experienced observers...
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 - "EU's choice, compared to that of USA's, on the issue of the Strategy on how to get out of the (Global) Crisis, is, in large majority, as it's well known, mainly to Invest in order to augment Competitiviness, and, recently, also Growth", reminded from the outset a 1st Question from "EuroFora".

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=> So, "Now, there are some first Indications, particularly on the last Month of 2011, which might show an insufficient yet, but real start of amelioration, mainly on EU's Exports and balances of External Trade, even in relation to highly Developed Countries, as USA itself. Do you think that this goes in the good direction, and could and should be developed further ?", we asked the 3 Key-MEPs.
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    "EuroFora"s reference was mainly done to the just published Statistics which indicate that "€uroArea Exports' surplus to the U.S. jumped up in 2011",  marking" a growing Acceleration in 2011,  after U.S. "Exports to the €uro zone fell - 1.6 % in December (2011) from the same month in 2010". Meanwhile, €uroArea Imports' from the U.S. is "Down Sharply from + 15% year-over-year growth from that region in August". "it was the largest imbalance since June" 2011, "because imports grew at a faster pace than exports":  U.S. "Imports rose + 1.3 %" while "Exports increased + 0.7 %" only". EU "consumes nearly one-fifth of U.S.' exports", and this result is due to lessen U.S. Growth expectations for 2012. + Moreover, "U.S. officials recently expressed their concerns" on EU Economy's possibility to "trigger the notable decline in U.S. exports to Europe, thus widening the U.S. Trade Gap this year" (2012). => This resulted in an ... U.S. trade deficit unexpected rise ... in December, the Highest level in six months" since June, from some - 38 up to almost - 49 Billions $. (i.e. about + 11 Billions $ worse).


+ In addition, the Annual USA "Deficit with China climbed to an all-time High of  - 295.5 billions $, up + 8.2 %from the previous record set in 2010. Both imbalances were the largest ever recorded with a single country".  "The U.S. trade Gap widens sharply in December (2011) as ... Imports surged + 3.0 Billions $ .... Meanwhile, Exports edged up + 1.2 billions $". => In consequence, "2011 trade Deficit was (up for +0,3% of GDP)  corresponding to - 3.7 %of U.S. gross domestic product, compared to 3.4 percent in 2010".  For the full year (2011), the U.S. "Total goods and services Deficit ..climbed from - 500 Billions $ in 2010" to -558 billions $ in 2011", i.e. the "Highest level since 2008",  (i.e. just when the Global Economic Crisis was triggered from the U.S.)...


Moreover, concerning particularly France, "Big Contracts' annual average obtained by French exporting businesses augmented up to + 61% yearly, between 2007-2011,compared to the previous, 2000-2006 period". The volume of France's Market share in €urozone remained stable after 2007, while, on the contrary,  it had been losing some - 2% each year in average "since 1998".External Trade's Deficit worsening (since the Global Crisis) was "interrupted" at the end of 2011's first trimester; and the trend was even inversed during the following 9 Months, with the only exception of Energy's bill. Meanwhile, the number of Expoting Businesses became almost Stable during 2011, after an augmentation in 2010, (etc).


* Last but not least, France astonished commentators with an unexpected + 1,7% Growth in 2011,  the Best in all €uroArea. In addition, OECD figures show that during all 2011, €uroarea main countries' Growth (compared to the previous, 2010 year) was better (f.ex. in the case of Germany) or similar (f.ex. in the case of France) to that of USA, despite the refusal of EU Countries to fund their national Consumption, contrary to what US Government partly does.

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=> All these Facts could be explained by an augmentation of €uroarea's Competitiveness; obtained by recent structural Reforms. "These sudden, big Changes, towards the end of this Global Crisis, where €uroArea focused exclusively on investing in Competiviness' gains, via Scientific/Technologic Innovation and Structural Reforms, while USA used both RST investments and classic Keynesian stimulation of Consumers' massive demand, might be a factual indication that €uroArea probably is going to win this challenge", observed "EuroFora"s reader "GeoPol" (See : http://www.eurofora.net/forum/index.php?topic=553.msg665#new ).


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+ Energy findings :
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+ But, on "another, differend, but relevant question  : On the contrary, a sector which still continues to have heavy effects on EU's external accounts' balance, pushing towards a Deficit, and, thus, towards a Debt, is its Energy bill", noted "Eurofora"s 2nd Question to EU Parliament's Rapporteurs on Growth.

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=> "Do you think that, if we (EU) had a chance to discover something like USA did in the Gulf of Mexico, as recent Oil/Gas findings f.ex. around Cyprus and elsewhere indicate, could and should it help EU Growth policies timely ?", we asked all 3 key MEPs.


>>> Meanwhile, in the 1st visit of an Israeli Prime Minister in Cyprus during the last 63 Years, as Netanyahu observed together with Christofias, already, after making one exploratory drilling,  Cyprus got a "hit", in addition to Israel's earlier made 7 Drills with 7 Hits" in a closely adjacent area of the South Eeastern Mediterranean Sea, where "still remain other 50 Blocks" to explore.

20120216_12.47.05_400


Therefore, the 2 Heads of State discussed the finalisation of their "Demarcation Agreement", a plant at Vassiliko, the possibility of a Joint Pipeline, LNG Facilities, and whether it could be at the direction of Asia, via Israel, or in the direction of Europe, via Cyprus", as israeli Prime Minister Natanyahu characteristically said in a Press Conference transmitted also at EU Parliament's Press Center in Strasbourg.
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- "We can always hope that the Efforts made by one or another (EU Country) will really start yielding Results, in terms of points of Growth", energy findings, exports' surplus, etc., welcomed these converging, Poritive Facts, EU Parliament's Rapporteur on Growth, French MEP Jean-Paul Gauzes", in reply to "EuroFora"s question No 1 (See supra).


+ "But it still remains, however, something rather Fragile, at any case, according to my analysis", carefully added the cautious French mainstream MEP from the Governing Majority UMP.  
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- "Small Light of Hope", added EU Rapporteur for Growth and Employment, Marije Cornelissen , "Green" MEP from the Netherlands, in reply to both "EuroFora" questions.

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- First, "because, when we (MEPs) had initially drafted our Reports, at around November 2011, after the Annual Survey, we thought that Investing for Jobs, for Economic Growth, etc.. was something New, since EU Governments were, then, preoccupied mainly in terms of Budgets' Economies, to pay and reduce Debts, Austerity to diminish spending, etc", she reminded.


+ "But, since then, there are several mainstream Economists, even IMF, etc. who advance in that direction, who urge Europe not to kill its Economy, etc", Cornelissen observed, pointing also at the recent EU Summits' U-Turn towards seaking also to stimulate Growth, from the December 2011 up to January 2012 EU Heads of States/Governments' decisions in Brussels, (See "Eurofora"'s NewsReports on both events from the spot).


+ And "from this point of view, Energy is an excellent example, on which we (EU) could invest ", she added. When one invests in sustainable Energy Transport, ... then, it could be a good Export product, particularly for Countries like Greece and Spain, etc.", she added.
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But the "Green" MEP from the Netherlands, preferred to speak more about "Solar" and/or other Renewable Energies, as she indicated on this occasion.


- Because "it would also be much more profitable to the EU, because it could be less dependent to Non-Renewable Energy Sources (RES), which are located there where we know", (i.e. mainly Outside of the EU until recently, thereby aggravating its External Balance of Payments : Comp. Supra), Cornelissen tried to justify for her preference.
But, curiously, that "Green" MEP, obviously missed the Real Facts of the concrete case evoked by "EuroFora"s questions : Because, in the case of EU - Member Cyprus, Oil/Gas Findings are naturally located INSIDE the EU, and, therefore, are both more Economic, and Safer, as well as strengthening EU's Independence from any other, External Energy sources, which would depend, on the contrary, from Foreign, 3rd Countries....
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But the most strange (or, perhaps, politically  revealing) stance was that of Socialist French MEP Mrs Pervenche Beres, an experienced former Chair of EU Parliament's Economic Committee :


Beres didn't, naturally, contest the Fact that  winning in Global Competitiviness and marking Positive Surplus in Exports even to the most developed Countries in the world, as EU apparently started to do vis a vis the USA (See Supra), could be of serious help for Growth.

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- "I believe that the Investment for Growth and Jobs, i.e. for a sustainable development, is the right path", she simply replied to "EuroFora"s factual observations (See supra),  apparently going in a similar direction at first sight.
However, apparently impressed by the current, short term needs of the political discord inside France for the May 2012 Elections, the French Socialist MEP astonishingly preferred to almost throw away, as indifferent or ...non-essential, any EU Progress which might be done on Winning Foreign Markets, even in the most Developed Countries of the World as USA (See supra), and into domestic Energy Findings in Oil/Gas inside EU Territory (Comp. supra) !


- "But, EU Council's Majority's policy, doesn't go in this direction" wished by Mrs Beres, she suddenly added, starting to criticize both previous points  :


+ On EU's Exports' surplus to the USA (See supra), the Socialist MEP, (who didn't contest the Fact), preferred to contest its value :


 - "Since we entered into the €uro era, we thought that the momentum of our Internal Market's Demand wouldn't be enough. ... we waited,  cycle after cycle, looking towards the USA, as Godot (reference to the Philosophical Comedy Theater play : "Waiting Godot", which denounced passive inactivity), including when (US) Growth didn't arrive here (in EU), while, on the contrary, the (US-triggered) Crisis arrived rapidly (also in the EU)", she criticized, apparently preferring to focus only on "Internal Demand''s stimulation, as in the good old times of National Keynesianism, as if Globalization, Foreign Trade Liberalization and EU integration (with ECB's growing central role) hadn't yet occured...


=> Thus, - "Concerning the USA, I think that, if we (EU) are able to learn the lessons of our Past Mistakes,  the Autonomy of EU's Strategy should be one of them : .... We must learn also from that lesson, and this means that we (EU) must count on our own forces, i.e. find Funding sources for our own needs, that is to say for the Jobs that we need in our territory", Beres concluded.


+ Moreover, speaking afterwards on Energy, (No 1 Expense of the EU and Dependency from Foreign Countries : Comp. Supra), the Socialist MEP merely stuck to a traditional line : - "

- "I don't think that the best news for Europeans would be to discover a lot of Oil-Gas Off Shore, (sic !), because the off shore is not always the Safest and less Polluting Energy Source",, she only found to say even during the present, "Hard" times of Global Financial Crisis..
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    + On this occasion, Beres, (in agreement with EPP's Gauzes), added the observation that EU's Economic Policies should be Democratically Debated, considering various options.


    Something which was, as far as it concerns EU Citizens ("EuroFora"s declared main concernà, in principle, was done at EU level during the 2009 EU Parliament Elections, and, (waiting for the next, 2014 EU Elections in 2 Years time), meanwhile, EU Citizens will have numerous real opportunities to vote in a an excepionally "dense" series of important, key Elections, including, f.ex. in France and Greece on 2012, in Germany, Italy and Cyprus on 2013, for EU Parliament on 2014, etc., while Spain has just voted recently (2011), after the UK and Hungary (2010), etc.
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    + Meanwhile, EU Parliament's draft Joint Resolution, already prepared from most Political Groups, simply "agrees with the (EU) Commission's analysis, that efforts .... should concentrate on .. :


    - ".. Fiscal Consolidation", "while also ensuring ecnomic Recovery and Job Creation",


    -"promoting sustainable Growth, through More Competitiveness (i.e. the Main point at all recent EU Summits : Comp. supra), and investments",


    - (starting to ) tackle Unemployment and the Social Consequences of the (Global)  Crisis"


    and : - "Modernize EU Public Administration and General Interest Services".
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(../..)


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